To: Board of Supervisors
From: Treasurer/Tax Collector
Agenda Section: Consent
SUBJECT:
title
Dry Period Financing
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Adopt the attached resolution (Attachment 1) to authorize temporary transfers to Humboldt County School Districts and the Community College as required by California Constitution Article XVI, Section 6;
2. Approve the Dry period Financing Temporary Transfer Agreement (Attachment 2) and direct the Treasurer-Tax Collector to execute Temporary Transfer Agreements on behalf of the county as needed; and
3. Authorize the use of the Dry Period Financing Request form (Attachment 3) to ensure adequate and accurate financial data is used for all Temporary Transfers.
Body
SOURCE OF FUNDING:
Interim financing to be done through the Investment Pool
DISCUSSION:
Approval of Temporary Transfers will assist the Humboldt County school and community college districts to meet critical cash flow needs expected to be in excess of $40 million annually and significantly reduce their costs relating to borrowing money for maintenance purposes.
California Constitution Article XVI, Section 6, and California Education Code Section 42620, provides that the Treasurer-Tax Collector (Treasurer) has the power and the duty to make Temporary Transfers (Transfer or Transfers) for any district or other political subdivision whose funds are held in custody by the Treasurer and paid out solely through the Treasurer's office. Such Transfers shall be made only upon resolution adopted by the governing body of the County and to meet the obligations incurred for maintenance purposes by the district. Further, they also provide that such Transfer of funds cannot exceed 85% of the anticipated revenues accruing to such district cannot be made prior to the first day of the fiscal year nor after the last Monday in April of the current fiscal year, and must be replaced from the revenues accruing to such po...
Click here for full text